Data for product XY30 is presented below. The company is considering discontinuing this product. ...
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Accounting
| Data for product XY30 is presented below. The company is considering discontinuing this product. |
| Sales | $933,000 |
| Variable expenses | $412,000 |
| Fixed manufacturing expenses | $347,000 |
| Fixed selling and administrative expenses | $254,000 |
| All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $214,000 of the fixed manufacturing expenses and $125,000 of the fixed selling and administrative expenses are avoidable if product XY30 is discontinued. |
| According to the company's accounting system, what is the net operating income earned by product ZY30? Include all costs in this calculationwhether relevant or not. |
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